Measuring & Evaluating Trust Bank Limited Performance& its Funds & Capital Management

http://www.identitymag.com/article.aspx? ArticleID=1048 Report On

Measuring & Evaluating Trust Bank limited Performance & its Funds & Capital Management
Prepared for
Abdullah Al- Yousuf Khan Faculty of College of Business Administration (CBA)

Prepared by
Ice bar
Section: A

Program: BBA Group members name: Mohammad Ullah 09302063 ID#

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Md.Rasel Ahmed 10102140 Muktara Akter Nupur 09102015

Letter of Transmittal
05th August, 2012 Abdullah Al- Yousuf Khan Faculty of CBA - College of Business Administration IUBAT International University of Business Agriculture & Technology. 4 Embankment Drive Road, Sector 10. Uttara Model Town, Dhaka 1230. Subject : Submission of Report. Dear Sir It is great pleasure for us to submit our proposal on the topic of Measuring & Evaluating Trust Bank limited Performance & its Funds & Capital Management . We have prepared this plan, as partial fulfillment of the course FIN-302 (Corporate Finance). To make this report up to the standard we tried our best to fulfill the requirements by implementing the

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knowledge we have gathered from the course. Thank you very much for providing us this type of opportunity and giving us the necessary guidance and direction needed for preparing the report. We express our heart full gratitude to you to go through this report and make your valuable comments. We hope this type of report will be able to fulfill your expectation towards us.

Yours truly, The group of Ice bar.

Student Declaration
We are declaring that this report on the topic of Measuring & Evaluating
Trust Bank limited Performance & its Funds & Capital Management has only been prepared for the partial fulfillment of the course

requirement FIN-302 (Corporate Finance). It has not been prepared for any other purposes, like reward or presentation.

Student name with ID and Signature:

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Mohammad Ullah ID# 09302063

Md.Rasel Ahmed

ID#10102140

........................................... Muktara Akter Nupur

ID#09102015

Date: 01th August, 2012 The Branch Manager Trust Bank Limited Subject: Banking Sector Funds Management.

Dear Sir / Madam,

As a part of the course activities the interview sessions with the customers are important part in Funds Management completion the course final report successfully for the BBA Students. In this connection, I do believe that you have the accountability to assist the students accordingly in responding to the challenges facing by the bank manager to upgrade its Measuring & Evaluating Trust Bank Limited Performance & its Funds & Capital Management to sustain its customer loyalty.

For this reason, in anticipation of the aforesaid subject, I would like to seek your cordial support for my students. Your kind cooperation will be highly appreciated. Thanking you in advance.

Sincerely yours,

(Abdullah Al-Yousuf Khan ) Faculty, College of Business Administration, IUBAT

Students Announcement
We would like to declare that we have completed our research Trust Bank Ltd and prepared this report which is entitled as Measuring & Evaluating Trust Bank Limited Performance & its Funds & Capital Management to fulfill the partial requirements of Bachelors of Business Administration (BBA).

It has been prepared for also a presentation.

Ice bar
Mohammad Ullah 09302063

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Md.Rasel Ahmed 10102140 Muktara Akter Nupur 09102015.

Acknowledgement

All praise to almighty Allah our creator, our sustainer to whom we all have to return. We bear the witness that there is none worthy of worship except Allah merciful and benevolent and we also bear the witness that Mohammad (Sallallahu allihi wasallam) is Allahs slave and messenger. In the process to doing and preparing my report, we would like to pay my gratitude and respect to some persons for their immense help and enormous cooperation. First of all we would like to pay my gratitude to my respectable instructor Abdullah AlYousuf Khan who gave the opportunity of doing on a report of Measuring &
Evaluating Trust Bank Limited Performance & its Funds & Capital Management.

Finally we would like to thank again respected faculty Abdullah Al-Yousuf Khan as because he gave us the opportunity of making such kind of report that will be very helpful for our prospective career.

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Ice bar

Executive Summary
This paper has attempted to highlight on a Measuring & Evaluating Trust Bank Limited Performance & its Funds & Capital Management. Trust Bank Limited is among the leading commercial banks of the country. Lending is one of the principal functions of the bank. Sound lending practice therefore, is very important for profitability and success of a bank. . For the sake of sound lending, it is necessary to develop a sound policy and modern credit management techniques to ensure that loans/ advances are safe and the money will come back within the time set for repayment. For this purpose, proper and prior analysis of credit & capital proposals is required to assess funds management. Credit risk analysis is one of the basic to risk management and control, as it is the risk factor inherent in many bank businesses as the quality of credit is critical to sound banking. For the effective application of CRA, expertise and willingness as well as motivation of the bankers are needed. By removing the road blocks of CRM and CRG implication through the recommendations mentioned in this paper Trust Bank Limited can open a new horizon to better assess the risks for lending bankers and will bring the accountability in financial sector.

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Table of Contents
Topics Page No. A. Prefatory Part: a. Title Fly ....I b. Title Page .. II c. Letter of Transmittal.. III d. Student Declaration... IV e. Letter of Authorization. . .,.... V f. Students Announcement...... VI g. Acknowledgement ...VII h. Executive Summary....VIII B. Report Part 1.0 Introduction..............1 1.1 Statement of the Problem.....2 1.2 Positioning statement. 1.3 Scope and Delimitation of the Study. 1.4 Objectives of the Study.. 2.0 Organizational Overview 2.1 About TBL Bank Limited... 2.2 Vision... 2.3 Mission.. 2.4 Core Objectives .

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2.5 Goals of TBL Bank Ltd.. 2.6 Corporate Information.. 3.0 Overall Banking of TBL: .. 3.0.1 Bank Credit.. 3.0.2 Bank Deposits. 3.0.3 Credit/Deposit Ratio. 3.0.4 Cash Reserve Ratio (CRR) .. 3.0.5 Statutory Liquidity Requirement (SLR) . 3.0.6 Bank Rate. 3.0.7 Interest Rates on Deposits and Advances 4.0 Review of banks operation. 4.3 Summary of Financial Performance.. 5.0 Measuring & Evaluating TBL Performance. 5.0.1 Return on Equity (ROE).. 5.0.2 Return on Assets (ROA) 5.0.3 Net Interest Margin.. 5.0.4 Operating Profit Margin.. 5.0.5 Earnings per share (EPS).. 5.0.6 Spread income.. 5.0.7 Net Profit Margin (NPM) 5.0.8 Asset Utilization (AU).

5.0.9 Equity Multiplier (EM).. 6.0 TBL Funds Management.. 6.0.1 TBL Deposits: 6.0.2 TBL Loans.. 6.0.3 Income from Investment of TBL 6.0.4 Asset-Liability Management (Banking Terms): 6.0.5 Asset-Liability Management (Finance & Investment terms). 6.0.6 Trust Bank limited Total Revenue 6.0.7 Interest sensitive assets. 6.0.8 Interest sensitive liabilities.. 6.0.9 Interest rate risk.. 6.0.10 Net Interest Margin... 6.0.11 Dollar gap 6.0.13 Duration Gap Analysis.. 6.0.14 TBL Total Import 6.0.15 TBL Total Export.. 7.0 Trust Bank Limited Capital Management.. 8.0 Trust Bank Limited banking Risks.. 9.0 TBL SWOT Analysis. 10.0 Methodology of the Study.. 11.0 Findings & Recommendation 12.0 Conclusion..

C. Supplementary Part: 14.0 Bibliography..

1.0 Introduction
Modern banks play vital role in promoting economic development of a country. Banks provide necessary funds for executing various programs underway in the process of economic development. They collect savings of large masses of people scattered throughout the country, which in the absence of banks would have remained idle and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the requirements. TBL Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. The focus of the report was basically based on
Measuring & Evaluating Trust Bank Limited Performance & its Funds & Capital Management

1.1 Statement of the Problems

To make the consequence more specific we have focused different sectors. Those are: What are the most important assessment criteria How grading are done based on assessment To analyze the Credit flow of Trust Bank Functions and use of Credit Risk Grading in Trust Bank To evaluate the overall credit management system of Trust Bank.

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1.2 Positioning statement

Trust Bank is a contemporary, upbeat brand of distinctive quality of service and solution that offers a rewarding banking experience as preferred choice of banking partner every time, everywhere .

1.3 Scope and Delimitation of the Study

Through this survey following people will be benefited Banks Financial institutions.

1.4 Objectives of the Study

The report is prepared on the Measuring & Evaluating the Funds Management of Trust Bank with the thought of getting in depth of the funds & capital Assessment criteria and understands its importance.

1.5 Broad Objective

The broad objective is to know about Capital, Assets & Liabilities management.

1.6 Specific Objective

To have better orientation on Funds management activities specially assets and liabilities management, credit appraisal, credit-processing steps, risk management, Cash flow, profit & loss, liquidity of Trust Bank Limited (TBL).

5 years at a glance
Particulars Income Statement Net Interest Income Net Non-interest Income 130.09 134.18 167.07 129.19 296.26 69.98 226.29 400.00 146.90 546.90 39.20 2004 2005 2006 2007 2008

( Taka in million) 667.80 185.91 853.71 273.94 507.70 1,172.42 80.02 1,252.44 262.97 579.77

Profit before provision and tax 264.27 Provision for loans, investment and Profit after provision before tax 989.47

47.89 216.38

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Tax including deferred tax Profit after tax Balance Sheet Authorized Capital Paid-up Capital Total Shareholder's equity Deposits Long-term liabilities Loans and advances Investments 4,962.66

40.41 175.98

105.00 121.29

244.54 263.16

340.74 239.03

526.42 463.05

2,000.00 500.00 870.69 9,314.95 2,718.56 6,804.45

2,000.00 500.00 991.97 12,704.90 2,664.12

2,000.00 500.00 1,155.00 18,985.95 7,135.03

2,000.00 1,166.67 2,154.29 27,101.59 3,335.77 18,682.16 3,122.81

2,000.00 1,540.00 3,119.65 32,919.76 4,367.20 27,528.08 3,785.45

9,738.32 3,220.78

13,188.09 2,447.95

Property, Plant and Equipment 86.18 Earning Assets 11,410.25

110.62

146.05 18,608.06

194.22 27,636.29

342.39 34,852.83

13,708.73

Total assets Debt equity ratio Other Business Import Export Remittance Guarantee Business Capital Measures

12,059.71 35.30%

14,782.15 18.48%

21,060.77 17.23%

30,382.22 13.10%

38,475.64 11.33%

8,542.00 2,636.00 197.90 641.00

9,746.00 2,911.00 535.20 1,627.29

11,483.00 2,884.00 765.00 726.51

13,816.16 3,980.87 2,532.98 1,114.84

16,660.98 6,078.79 5,788.87 847.70

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Total risk weighted assets Core capital (Tier-I)

6,187.98 870.69

8,925.76 991.97 123.10 1,115.07 11.11 1.38% 12.49% 2005 128.97

14,075.99 1,155.00 155.95 1,310.95 8.21% 1.11 9.32% 2006 174.37

19,573.21 2,092.89 297.73 2,390.62

27,362.42 3,045.37 459.07 3,504.44 11.13 1.68% 12.81%

Supplementary capital (Tier-II) 69.83 Total Capital Tier-I capital ratio Tier-II capital ratio Total capital ratio Credit Quality Non-performing loans (NPLs) 940.52 14.07% 1.13% 15.20% 2004 100.35

10.69% 1.52% 12.21% 2007

2008 (years) 693.28 2.52% 418.94 311.81

506.65 2.71% 264.03 225.84

% of NPLs to total loans and advance 1.47% General Provision Specific Provision 66.83 41.29

1.32% 118.88 56.90

1.32% 152.95 63.68

Share Information Market price per share (Taka) Earnings per share (Taka) Net assets per share (Taka) 202.57 Price earning ratio (times) Operating Performance Ratio Net interest margin on average earning assets1.38% 1.33% 2.48% 2.89% 3.75% 0.03 0.03 35.20 24.26 174.14 52.63 198.39 929.25 28.37 231.00 445.00 31.96 184.60

Net non-interest margin on average earning assets1.42%1.03%0.91% 0.80% 0.26%

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Cost income ratio Return on average equity 17.56% Other information No of Branches No of employees No of foreign correspondents Average earning assets Average total assets Average deposits Average equity

74.74%

79.49%

75.32% 13.02%

73.93% 24.51%

71.97% 14.45%

26.56%

15 273 15 12,559.49 13,420.93 11,009.93 931.33

18 359 15 16,158.39 17,921.46 15,845.43 1,073.49

26 508 19

31 842 19

37 979 23 31,244.56 34,428.93 30,010.67 2,636.97

9,432.04 9,959.27 6,899.10 662.49

23,122.18 25,721.50 23,043.77 1,654.65

2.1 Background of Trust Bank

Trust Bank Limited was incorporated and has been in operation in the Commonwealth of The Bahamas since 15th January 1962 and is one of the country's oldest established Banks. The Bank, which is an entirely independent corporate entity, both legally and practically, has established particularly effective relations with a significant number of companies and individuals worldwide, thus providing for a continuing flow of business and investment opportunities for the Bank and its clients. The Bank employs a dedicated staff of qualified professionals with the necessary quality technical expertise in all practice and support areas, including accounting, legal, banking, trust, compliance and financial due diligence. The majority of staff has been with the Bank, on average, over 15 years.

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The Bank also has longstanding, professional relationships with banking, accounting and legal firms in other financial centers and in the major world cities.

2.2 Vision
We aim to provide financial services to meet customer expectations so that customers feel we are always there when they need us, and can refer us to their friends with confidence. We want to be a preferred bank of choice with a distinctive identity.

2.3 Mission
Our mission is to make banking easy for our customers by implementing one-stop service concept and provide innovative and attractive products & services through our technology and qualified human resources. We always look out to benefit the local community through supporting entrepreneurship, social responsibility and economic development of the country.

2.4 Core Objectives

Trust Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Trust Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques "Your Trusted Partner"

2.5 The Goal of the Bank

Long-term goal: To maximize the wealth of the shareholders. Short term goal: The earn satisfactory rate of return on investment providing wide range

of banking services.

2.6 Corporate Information

Registered Name of the Company : Trust Bank Limited Registration No.& date : C- 37960(2260)/99,17June1999 Sponsor shareholders : Army Welfare Trust Certificate of Incorporation received on : 17June1999 Certificate of Commencement Of Business received on : 17June1999 Banking License received on : 15July1999 First branch license received on : 9August1999 Formal Inauguration on : 29November 1999 Corporate Web site : www.trustbank.com.bd E-mail : info@trustbanklimited.com

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Initial Public Offering: Publication of Prospectus : 17May2007 Subscription opening : 15July2007 Subscription closing : 19July2007 Listed with Dhaka Stock Exchange (DSE) on : 25September 2007 Listed with Chittagong Stock Exchange (CSE) on : 24September 2007 Commencement of trading of shares at DSE : 01October 2007 Commencement of trading of shares at CSE : 01October 2007 Company Secretary
Mr. Farhad Uddin

Auditors
Howladar Yunus & Co., Chartered Accountants 67 Dilkusha C/A, Dhaka-1000

Legal Advisor
Lee and Associates Suite#5/8, City Heart (4th floor), 67 NayaPaltan,Dhaka-1217

Tax Consultant
M/SADN Associates Kaizuddin Tower(8thfloor),47BijoyNagar,Dhaka-1000

Registered Office & Head Office

Peoples InsuranceBuilding, 36 Dilkusha C/A, Dhaka-1000 Tel:9570261, 9570263, 9572012-3 FAX:880-2-9572315.

3.0 Overall Banking of TBL:

3.0.1 Bank Credit Outstanding bank credit (excluding foreign bills and inter-bank items) during FY2008 increased by Taka 315.21 billion or 19.1 percent as against an increase of 14.7 percent in FY2007. The rise in bank credit during FY2008 was driven by increase in advances. Advances increased by Tk.344.60billion or 23.2 percent as against an increase of14.7 percent in FY2007. This higher growth in bank advances may be attributed to restored business confidence and higher economic activities owing to decline in real interest rate. Bills purchased and discounted declined by Taka 29.39 billion or 17.8percent in FY2008. 3.0.2 Bank Deposits Bank deposits (excluding inter-bank items)increased by Taka 347.22 billion or 17.6 percent to taka 2316.79 billion during FY2008 against 16.5percent increase in FY2007. The rise in total bank deposits was shared by increase in both demands deposits and time deposits. Time deposits increased by Tk.276.09 billion or 17.1 percent and stood at Tk.1889.45 billion in FY2008 against growth of 16.9 percent during FY2007. Demand deposits increased by Tk.35.90 billion or 15.3percent in FY2008 to Tk.270.53 billion against 18.9percent increase in FY2007. The relatively higher growth rate of deposits may be attributed to upward revision of deposit rates. 3.0.3 Credit/Deposit Ratio The credit/deposit ratio of the scheduled banks, excluding the specialized banks, remained same at 0.85 at the end of June 2007 and June 2008. 3.0.4 Cash Reserve Ratio (CRR) Cash Reserve Ratio (CRR) for the scheduled Banks with Bangladesh Bank remained same at 5 percent of their total demand and time liabilities since 1October 2005. It may be noted that the banks are required to maintain CRR daily at the rate of 5percent on average on bi-weekly

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basis, provided that CRR would not be less than 4 percent in any day with effect from 1 October 2005. 3.0.5 Statutory Liquidity Requirement (SLR) Statutory Liquidity Requirement (SLR) for the scheduled banks, except banks operating under Islamic Sharia and the specialized banks, remained same at 18.0 percent of their total Demand and time liabilities, excluding inter-bank items, since 1 October 2005. SLR for the Islamic banks remained unchanged at 10.0 percent. 3.0.6 Bank Rate The bank rate remained unchanged at 5.0 percent in FY2008. 3.0.7 Interest Rates on Deposits and Advances Weighted average interest rates on deposits of scheduled banks increased to 7.0 percent duringFY2008 as compared to 6.9 percent in FY2007.Weighted average advances rates, however, declined from 12.8 percent to 12.3 percent. Spread between advance and deposit also decreased to5.3 percent in FY2008 from 5.9 percent in FY2007.Deposit rate increased slightly while advance ra declined moderately thereby pushing the spread to decline to 5.3 percent in FY2008. 4.0 REVIEW OF BANKS OPERATION 4.1 Business Strategy Analysis 4.1.1 Business and profit growth Bank's overall businesses grew significantly in2008 over that of 2007. Deposits of the Bank increased by 41.47% and stood at Tk.32,919.76million at the end of 2008. Loans and advances increased by 47.35% and stood at Tk.27, 528.08million at the end of the year. Import business increased by 20.59%, while export by 52.70%.Both local and foreign remittances grew significantly. Increase in all the business parameters resulted in higher operating profit, which increased by 46.71%.

4.1.2SME Lending SME is the thrust sector of our economy and has got the priority in the countrys overall policy perception. SME sector has proved to be ineffective vehicle for creating employment opportunity, reducing of poverty and supportive to accelerate the overall growth of the economy. Keeping in mind the above views, we have already launched 7 (seven) SME products, visa Women Entrepreneur Loan, Loan for Shopkeepers, Agribusiness Loan, Loan for Poultry Farm, Loan for Light Engineering, Entrepreneur Development Loan for Retirees and Peak Seasons Loan. We are extending credit facility @ 10% to Women Entrepreneur for ensuring their participation in the main stream of economy. So far we have extended sizable amount of loan to the SME sector. Balance of SME loan outstanding as on 31st December 2008 is Tk 49.00 core. Our endeavor for the development of SME business is going on in full swing. 4.1.3 Remittance

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The Bank has been continuing to extend special importance to foreign remittance from the very beginning of its establishment. With this view, we have started business in inward foreign remittance with overseas remittance exchange house companies by establishing Drawing Agreement since December 2006 to meet up our internal foreign currency deficit as well as boost up foreign exchange business. During the year 2008 the bank signed money transfer agreement with overseas exchange companies. As a result, remittance flow has increased significantly. In the year 2008 total amount of the flow of remittance was Tk. 5,789 million as against Tk. 2,612 million in 2007registering an increase of 122%. 4.2.1 Online Transaction- Definition Online transaction facilitates Any Branch Banking to all customers meaning, customer is able to deposit or withdraw money from any Branch of Trust Bank nationwide. In addition, ATM Banking, Phone Banking, SMS Banking, & Internet Banking are alternate delivery channels offered by the bank which support online transactions. 4.2.2 Any Branch Banking Any Branch Banking is a facility for our customers to operate their accounts from any of our network branches. The branch where the customer maintains his account is the base branch and the branch from where he carries out his transactions is referred as the remote branch. Any Branch Banking facility is available at ALL branches of Trust Bank. At present ,following online banking services can be made with the system: a. Cash deposits, i.e. accountholder of one branch can deposit cash in his/her account at another branch. b. Cash withdrawals, i.e. accountholder of one branch can withdraw cash from another branch. c. TBL cheese deposits, i.e. accountholder of one branch can deposit TBL Cheese in his/her accountant a not . d. Fund transfer between Customer Accounts of different TBL Branches, i.e. accountholder of one branch can transfer fund to another account maintained with any branch of TBL. her branch.

4.2.3 Phone Banking TBL customers can access account information using any phone even after regular Banking hours. Information available through Phone banking: 1. About bank products 2. Balances on accounts, turnover and performed operations 3. Currency rates 4. Existing deposit terms, accrued interests and amounts 5. Loan repayment schedule 6. Account statements 7. Blocking/unblocking Visa cards 8. Accessing the bank's hot line 4.2.4 SMS Banking SMS Banking is a mobile technology that allows customer to request and receive banking information from bank on customer mobile phone via Short Message Service (SMS). Individuals or corporate bodies can manage their bank accounts, check their account

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balances, money transfers, pay some bills and perform other banking transactions using their mobile phones. With SMS banking, convenience can be achieved24hrs a day. This service enables safe and easy: 1. Check-up of customer account balance at request, daily and upon movement, 2. Effecting of payments to pre-defined accounts. Security of using SMS banking services is based on a PIN and customer mobile telephone number, as well as on pre-defined and registered account numbers to which payments are possible. 4.2.5 Internet Banking Banking around the clock is no longer a remote possibility. In addition, bank does not have to have branches in overseas to provide banking services to its customers traveling abroad. Internet banking is now a huge success for Trust Bank. Internet banking refers to banking operations carried out between banks and their clients through Internet. Internet banking helps in expediting banking operations, reducing the cost and ensuring that customer can utilize various banking services from customer's living room or even while traveling thousands of miles away from customer home. The process of Internet banking begins with every customer being given a unique user name and password by the bank. The customer can log on to the bank's web site with the user name and password to access his or her bank account. Account holder can give instructions online to the bank regarding any particular transaction. Defense personnel stationed overseas, who are the account holders of TBL, can access their accounts to check their account activities from overseas, such as remittance with our internet banking service. At present we have over 7000customers availing this facility. 4.2.6 ATM Via Online Services and Visa Electron (Debit Card),ATMs now allow customers to retrieve 24x7 hours Account information such as account balance checkup through mini-statements and cash withdrawals. Computer-controlled terminal is located on the premises of financial institutions or elsewhere, through which customers may make deposits, withdrawals or other transactions as they would through a bank teller. Total number of ATM acquired is 8 at 1. Principal Branch 2. Gulshan Branch 3. Radisson Water Garden Hotel Branch 4. CMH,Dhaka Cantonment 5. Sylhet Corporate Branch

6. CDA Avenue Branch, Chittagong 7. Halishahar Branch, Chittagong 8. Khwaja Yunus Ali Medical College & HospitalBranch, Sirajgonj 4.2.7 Online Debit Card Online debit cards require electronic authorization of every transaction and the debits are reflected in the users account immediately. The transaction may be Annual Report 2008 21 additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards. Customers may directly access their savings/current/short term deposit accounts with the card. Approximately 17000 customers have debit cards and this number is increasing day by day. 4.2.8. VISA Credit Card

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Trust Bank has introduced Visa Credit Cards to serve its existing and potential valued customers. Credits cards can now be used at shops &restaurants all around Bangladesh and even internationally. The bank has issued over 1500credit cards to the eligible customers. This numbers also growing day by day. 4.2.9 TBL as the Settlement Bank for Q-Cash Network Trust Bank is a member of Q-Cash Network which is a consortium of ATM network of 16 member banks in Bangladesh. Trust Bank has established itself as the Settlement Bank for the entire Q-Cash Network. 4.2.10 Interface with other ATM networks Being the Settlement Bank for Q-Cash network, Trust Bank plays a lead role for expansion and sharing ATM Network with different Banks at a competitive rate. Customers of Trust Bank may also use Dutch Bangla & Brac Bank ATMs for a nominal fee. This arrangement makes 24 hour banking transactions flexible for the customers of all banks involved in this expanded network. 4.2.11 Work in Progress l Human Resource Management System l Bangladesh Automated Clearing House (BACH) l Western Union Money Transfer System l Central Customer Support Center

4.3 Summary of Financial Performance

4.3.1 Deposits In the year 2008 the deposits of the Bank shot up to Taka 32,919.76 million from Taka 27,101.59million as recorded in the year 2007. The increase in deposits during this period was recorded a s21.47%. The combination of competitive interest rates, depositors' trust in the Bank and mobilization efforts of the Bank Management resulted in this notable growth of deposits. But there is no room for complacency; we have still a long way to go. The Bank evolved a number of attractive deposit schemes to cater to the requirements of small and medium savers which also brought qualitative changes in deposits structure of the Bank.

4.3.2 Loans & advances Total loans & advances of the Bank as on31December 2008 was Taka 27,528.08 million as against Taka 18,682.16 million in the year2007, showing an increase by 47.35%over the preceding year. The credit portfolio of the bank is a mix of scheme loans, namely-Renovation and Reconstruction of Dwelling House Loan (RRDH), Consumers Durable Scheme Loan (CDS),Marriage Loan, Car Loan, HBF Loan and Commercial Loan. Commercial Loans comprise Trade financing in the form of working capital and industrial loans (both large and medium scale industries) with both funded & non-funded credit facilities. The portfolio has been further diversified to avoid risk of single industry concentration and remains in line with the Banks credit norms relating to risk quality. The classified loans &advances accounted for 2.52% of the total loans & advances against industry average of 4.44% (PCBs). 4.3.3 Total assets

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Total assets of the Bank stood at Tk.38,475.64 million in 2008 from Tk.30,382.22million in 2007 registering a growth of 26.64%.Increase in assets was mainly driven by significant growth of customer deposits. The growth of deposits was used for funding growth in credit and investment. 4.3.4 Investments The Bank's investments grew by Tk. 1,177.21million during the year and stood at Tk.4, 962.66million at the end of 2008 as against Tk.3,785.45million in 2007. The Bank purchased government treasury bills and treasury bonds to cover the increased requirement of SLR. Out of the total investments, Tk. 759.03 million was invested in listed and unlisted shares of different companies. 4.3.5 Borrowings from other banks, financial institutions and agents Consolidated balance stood at Tk.1,131.04 million at the end of the year, which represents Tk.1,010.00 million call loans from other banks andTk.121.04 million refinance loans from Bangladesh Bank. The consolidated balance of 2007 was Tk.244.30 million. 4.3.6 Total Liabilities Total liabilities balance of the Bank stood atTk.35,355.99 million at the end of 2008 as againstTk.28,227.93 million in 2007, registering a growth of 25.25%. Increase in liabilities was mainly due to21.47% increase in deposits over the corresponding year.

5.0 Measuring & Evaluating TBL Performance 5.0.1 Return On Equity (ROE)
The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

ROE is expressed as a percentage and calculate as: Return on Equity = Net Income/Total Equity Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares. Also known as "return on net worth" (RONW).

Particular

2008

2007

2006

2005

2004

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Return on Equity

14.83 %

11.10 %

22.78 %

12.22 %

20.21%

(The figure shown increasing & decreasing the percentage of ROE in the following year)

5.0.2 Return on Assets (ROA)

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". The formula for return on assets is:

Note: Some investors add interest expense back into net income when performing this calculation because they'd like to use operating returns before cost of borrowing.
Particular Return on Assets 2008 1.20% 2007 0.79 % 2006 1.25 % 2005 0.82 % 2004 1.46 %

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(The figure shown increasing & decreasing the percentage of ROA in the following year)

5.0.3 Net Interest Margin

A performance metric that examines how successful a firm's investment decisions are compared to its debt situations. A negative value denotes that the firm did not make an optimal decision, because interest expenses were greater than the amount of returns generated by investments. Calculated as: Net Interest Margin=(Interes Income- Interest expences)/Total assets

In here Trust Bank Limited 31 December 2007,

Net Interest Margin is =667.80 -332.20 / 30,382.22

= 1.10%

In here Trust Bank Limited 31 December 2008,

Net Interest Margin is =1,172.42 -678.87 / 38,475.64 =3.11%

5.0.4 Operating Profit Margin

The operating profit margin ratio indicates how much profit a company makes after paying for variable costs of production such as wages, raw materials, etc. It is expressed as a percentage of sales and shows the efficiency of a company controlling the costs and expenses associated with business operations. Particular (Year) 2008 2007 Operating Profit (as million Taka) 2695.72 1935.87

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2006 2005 2004

1438.67 1080.47 939.58

5.0.5 Earnings per share (EPS)

Earnings per share ratio (EPS Ratio) is a small variation of return on equity capital ratio and is calculated by dividing the net profit after taxes and preference dividend by the total number of equity shares. The formula of earnings per share is: Earnings per share (EPS) Ratio = Net Income / No.of equity shares (Common Shares)
Particular
Return on Assets

2008
70.755%

2007
44.80%

2006
215.22%

2005
170.16%

2004
178.88%

(The figure shown increasing & decreasing the EPS in the following year)

5.0.6 Spread income

Difference between a cash inflow or income and cost. For depository institutions like banks, spread income is the difference between its assets, loans, or securities and the cost of its deposits and/or funds. Also called margin income.
TII TIE The Formula of Earning Spread is = ---------------------------- - -------------------------T EA TEBL

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In here Trust Bank 31 December 2007, Earning Spread is: = 828.12/ 721.45 612.34/467.33 = 0.1208- 0.3134 = 0.08 In here Trust Bank 31 December 2008, Earning Spread is: = 945.35 / 582.56 875.43 / 432.46 = 0.2195 0.1719 = 0.04

5.0.7 Net Profit Margin

The net profit margin, also known as net margin, indicates how much net income a company makes with total sales achieved. A higher net profit margin means that a company is more efficient at converting sales into actual profit.. Use this formula as a net profit margin calculator:

Net profit margin = Net income / Total revenue Financial calculators exist which can simplify the process of net profit margin calculation.

In here Trust Bank 31 December 2007, the Net Profit margin is: =239.03 / 7275.75 = 3.29% In here Trust Bank 31 December 2008, the Net Profit margin is :

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=463.05 / 8914.28 = 5.19%

5.0.8 Asset Utilization (AU) The asset utilization ratio calculates the total revenue earned for every dollar of assets a company owns. This ratio indicates a company's efficiency in using its assets. Formula: Asset Utilization = Revenue / Average Total Assets (Note: Y Charts currently approximates this value using Asset Turnover = Revenue / Total Current Assets)

In here Trust Bank 31 December 2007, Assets Utilization is: = 7275.75 / 25721.50 =2.83 % In here Trust Bank 31 December 2008, Assets Utilization is: = 8914.28 / 34428.93 = 25.89%

5.0.9 Equity Multiplier (EM)

Like all debt management ratios, the equity multiplier is a way of examining how a company uses debt to finance its assets. Also known as the financial leverage ratio or leverage ratio. In other words, this ratio shows a company's total assets per dollar of stockholders' equity.

A measure of financial leverage. Calculated as: =Total Assets / Total Stockholders' Equity In here Trust Bank 31 December 2007, the Equity Multiplier is:
= 30,382.22 / 2,154.29

= 14.10%

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In here Trust Bank 31 December 2008, the Equity Multiplier is: = 38,475.64 / 3, 119.65 = 12.33%

6.0 TBL Funds Management

Management of net funds available for investment and external funds purchased from other banks. Funds management attempts to match the cash flow needs of a bank against maturity schedules of its deposits as loan demand increases or decreases. Funds management is more of a Treasury function than Asset-Liability Management , which deals mainly with control of interest rate risk and liquidity risk, and the pricing of loans in specific time periods. Funds management examines the mix of funds raised by a bank, including large dollar deposits, non-deposit borrowings, and credit advances from a Federal Reserve Bank or Federal Home Loan Bank. Its aim is supplying funds sufficient to meet the bank's asset growth objectives at the lowest funding cost, and at acceptable levels of risk (credit risk, liquidity risk, and interest rate risk). On the asset side of the balance sheet, funds management deals with the control of discretionary portfolios by the corporate treasurer, including the investment securities portfolio and trading account assets. On the liability side, it focuses on wholesale sources of funds, including credit advances from a Federal Reserve Bank or Federal Home Loan Bank, and hedging techniques, such as interest rate futures and interest rate swaps to control these balance sheet exposures. Also called balance sheet management.

6.0.1 TBL Deposits:

They collect fund as a various deposit basis. Such as current deposit, Demand deposit, Bills payables, saving bank deposits, Short-term deposit, fixed deposits, Bearer certificates of deposit, other deposits. Particular(years) 2008 2007 2006 2005 Total Deposits(In million taka) 32,919.76 27101.59 18985.95 12704.90

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2004

9,314.95

Figure shown increasing & decreasing Total Deposits (In million taka)the following year.

6.0.2 TBL Loans:

An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk) Particular(years) 2008 2007 2006 2005 2004 Total Loans & Lease(In million taka) 27,528.08 18,682.16 13,188.09 9,738.32 6,804.45

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6.0.3 Income From Investment Of TBL Of the year 2004 to 2008:

The income from the investment or the loan is given below: At the year 2004 the income from revenue was 175.98million per year and to the next year the income has been increased to 121.29in the year 2006 the income was again increased to 263.16.After that year in the next year the income sloped down a little bit to 239.03million. And in the last year 2008 the income is in the highest number that means at 463.05million taka per year

6.0.4 Asset-Liability Terms):

Management

(Banking

Active management of a bank's balance sheet to maintain a mix of loans and deposits consistent with its goals for long-term growth and risk management. Banks, in the normal course of business, assume financial risk by making loans at interest rates that differ from rates paid on deposits. Deposits often have shorter maturities than loans and adjust to current market rates faster than loans. The result is a balance sheet mismatch between assets (loans) and liabilities (deposits).The function of asset-liability management is to measure and control three levels of financial risk: interest rate risk (the pricing difference between loans and deposits), credit risk (the probability of default), and liquidity risk (occurring when loans and deposits have different maturities).

6.0.5 Asset-Liability Investment terms):

Management

(Finance

&

Matching an individual's level of debt and amount of assets. Someone who is planning to buy a new car, for instance, would have to decide whether to pay cash, thus lowering assets, or to take out a loan, thereby increasing debts (or liabilities). Such decisions should be based on

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interest rates, on earning power, and on the comfort level with debt. Financial institutions carry out asset liability management when they match the maturity of their deposits with the length of their loan commitments to keep from being adversely affected by rapid changes in interest rates.

Trust Bank limited Total Assets :

Particular (Years) Total Assets (As million Taka) 38,475.64 30,382.22 21,060.77 14,782.15 12059.71

2008 2007 2006 2005 2004

(This figure shown the Total Assets in the following years)

6.0.6 Trust Bank limited Total Revenue:

Particular (Years) Total Revenue (As million Taka)

2008 2007

8914.28 7275.75

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2006 2005 2004

6367.58 5181.15 3434.73

(This figure shown the Total Revenue in the following years)

6.0.7

Interest sensitive assets

Bank assets, principally loans, that are subject to changes in interest rates, either at maturity or when they are reprised according to an index rate. Reprising of these assets is pegged or indexed to the upward or downward fluctuations of a publicly disclosed rate or cost of funds index, such as the six-month Treasury bill, the bank prime rate, and so on. Examples are variable rate consumer loans, variable rate demand loans, and adjustable rate mortgages. For example: From 2007 balance sheet of Trust Bank Limited total Interest Sensitive Assets is: 8950.12 +6980.06 = 15930.18( million) From 2008 balance sheet of Trust Bank Limited total Interest Sensitive Assets is: 9561.45+ 7890.43 =17451.88 ( million)

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6.0.8 Interest sensitive liabilities

Short-term deposit instruments paying floating, as opposed to fixed, rates of interest. Since Regulation Q interest rate ceilings were abolished under the Monetary Control Act of 1980, a significant portion of bank deposits are rate sensitive, including the six-month Money Market Certificate , the Money Market Deposit Account , and the super now account .. For example: From 2007 balance sheet Interest of Trust Bank Limited Sensitive Liabilities is: 5567.14 + 2894.78 = 8461.92 (million)

From 2008 balance sheet Interest of Trust Bank Limited Sensitive Liabilities is:

6452.78 +3451.34 = 9904.12(million)

6.0.9 Interest rate risk

Possibility that the value of an asset will change adversely as interest rates change. For example, when market interest rates rise, fixed-income bond prices fall. Risk that an interest-earning asset, such as a bank loan, will decline in value as interest rates change. Longer maturity, fixed rate loans (for example, 30-year conventional mortgages) are more sensitive to price risk from changes in rates than variable rate loans. Another type of interest risk is reinvestment risk , or the possibility that maturing loans cannot be replaced by new loans earning the same interest rate.

6.0.10 Net Interest Margin

A measure of the return on a company's investments relative to its interest expenses. The net interest margin helps a company determine whether or not it has made wise investment decisions. A negative net interest margin indicates that interest expenses exceed investment returns and that the company therefore has a net negative return. A positive net interest margin indicates the opposite. It is calculated thusly: From Trust Bank Limited balance sheet Net interest margin is: Net interest margin = (Total interest income Total interest expenses) / Average earning assets.

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6.0.11 Dollar gap:

In general dollar gap means the difference between the interest sensitive assets and interest sensitive liability of a company.

Trust Bank Limited 2008 Dollar Gap is: = Interest sensitive assets Interest sensitive liabilities = 4895.12 2328.14 =2566.98(million)

: Trust Bank Limited 2007 Dollar Gap is = Interest sensitive assets Interest sensitive liabilities
=

8637.14 5843.25
=2793.89(million)

6.0.12 Duration Gap:

The difference between the duration of assets and liabilities held by a financial entity. The duration gap is a financial and accounting term and is typically used by banks, pension funds, or other financial institutions to measure their risk due to changes in the interest rate. This is one of the mismatches that can occur and are known as asset liability mismatches. Another way to define Duration Gap is: it is the difference in the sensitivity of interestyielding assets and the sensitivity of liabilities (of the organization ) to a change in market interest rates (yields).The duration gap measures how well matched are the timings of cash inflows (from assets) and cash outflows (from liabilities).

6.0.13 Duration Gap Analysis:

Duration gap = Dollar-weighted - Dollar-weighted x Total liabilities duration of asset duration of bank Total assets portfolio liabilities Asset duration > Liability duration = Positive gap Liability duration > Asset duration = Negative gap

6.0.14 TBL Total Import:

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To use data produced by another application. The ability to import data is very important in software applications because it means that one application can complement another. Many programs, for example, are designed to be able to import graphics in a variety of formats

Particular (Year) 2008 2007 2006 2005 2004

Total Import (In million taka) 16,660.98 13,816.16 11,483.00 9,746.00 8,542.00

6.0.15 TBL Total Export:

The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. Particular (Year) 2008 2007 2006 2005 2004 Total Export(In million taka) 6,078.79 3,980.87 2,884.00 2,911.00 2,636.00

7.0 Trust Bank Limited Capital Management 7.0.1 Capital Plan & Management
The Bank is committed to maintain a strong capital base to support business growth, comply with all regulatory requirements, obtain good credit rating and CAMELS rating and to have a cushion to absorb any unforeseen shock arising from credit, operational and market risks. The capital maintenance and dividend policies are pursued taking into consideration the following factors Increased capital requirement for sustainable business growth Keeping sufficient cushion to absorb unforeseen shock or stress Cost effective options for raising Tier 1 and Tier 2 capital Improving credit rating and CAMELS rating of the Bank Meeting Regulatory requirements Core Capital (Tier I) The core capital ratio (Tier I) was 11.13% of total risk weighted assets against the standard of 5%. Capital, share premium, statutory reserve and retained earnings. As on 31 December 2008, our Core Capital stood at Tk.3,045.37 million againstTk.2092.89 million in 2007.

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Supplementary Capital (Tier II) Supplementary capital represents asset revaluation reserve, general provision for loans and Advances, preference share capital and other subordinated debt. At the close of business on 31 December 2008, our supplementary capital stood at Tk.459.07 million.

7.0.2 Capital Maintenance The amount of minimum capital that should be maintained by the Bank against its risk weighted assets is measured by the capital adequacy ratio laid down by Basel Capital Accord. Capital adequacy is measured by the ratio of Banks capital to risk weighted assets, both on balance sheet and off balance sheet transactions. All assets have been assigned weights from 0% -100%. Off balance sheet items are included in the computation by converting them into balance sheet equivalents before being allocated a risk weight. Banks capital has two components, Tier I (Core Capital) and Tier II (Supplementary Capital)

7.0.3 Total Capital Therefore, our total capital stood at Tk. 3,504.44million against Tk.2, 390.62 in 2007 and maintained ratio of 12.81% of total risk weighted assets against the standard of 10%. At the end of 2008, statutory Reserve of the Bank stood at Tk. 528.53million as against 330.63 million in 2007. 7.0.4 Sustainable dividend policy to ensure growth and maximize share value TBLs dividend policy is designed in a way to ensure sustainable growth of the Bank with strong capital adequacy ratio which must maximize value for shareholders. TBL paid 50% stock dividend in 2007. The proposed stock dividend for 2008 is 30.28%.

7.0.5 Information on dividends Bonus shares @50% i.e. 01 (one) bonus share for existing every 02 (two) ordinary shares of Taka 100.00 each for 2007 were declared in 2008. 30.28% bonus share i.e. 01(one) Bonus Share for existing every 03 (three) ordinary shares of Taka 100.00 each is proposed for 2008. 7.0.6 Share transfer system The shares of Trust Bank Limited (TBL) are being traded at the Stock Exchanges in Dematerialized form since June 15, 2004 through Central Depository Bangladesh Limited (CDBL) as per directive of Securities and Exchange Commission (SEC). Physical shares, which are not yet dematerialized, can be dematerialized with CDBL through BO ID numbers with Depository Participant (DP).

8.0 Trust Bank Limited banking Risks 8.0.1 Risk management

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We believe that risk is an integral part of business, and the main role of our risk management principles to find the optimal balance of risk and return. In todays challenging environment, effective risk management is vital for maximization of shareholders wealth. The Bank's risk management process encompasses mitigating credit risk, asset liability/balance sheet risk, foreign exchange risk, internal control & compliance risk and money laundering risk.

8.0.2 Credit Risk Management

Credit risk is the risk of erosion of value of assets due to simple default or non-payment by the borrower. Credit risk management is at the heart of the overall risk management system of the Bank. Its designed and continuously updated to identify, measure, manage and mitigate credit risk to maintain and improve quality of loan portfolio and reduce actual loan losses and to ensure that approved policies and procedures are followed and appropriate due diligence are made in approving credit facilities. In the evaluation process the Bank takes into account all the relevant information and financials reflecting the borrower's personal credibility, business status and prospect. Besides, we intend to diversify our portfolio across borrowers, entrepreneurs, groups to avert credit concentration risk. Risk grading is another tool for mitigating credit risk. All the new commercial loan proposals are graded according to stipulated criteria.

8.0.3 Asset-Liability Management

or

Balance

Sheet

Risk

Asset-Liability risk can be defined as potential changes in earnings due to changes in the rate of interest and exchange rates which are not of trading nature. Asset-Liability management (ALM)is concerned with strategic balance sheet management involving risks caused by changes in liquidity risk, interest rate risk, exchange rate risk, credit risk and market risk. In order to mitigate asset-liability risk, the Bank: Reviews the interest rate structure and compares the same to the interest/product pricing of both assets and liabilities; Examines the loan and investment portfolios inflight of the foreign exchange risk and liquidity risk that might arise; Examines the credit risk and contingency risk that may originate either due to rate fluctuations or otherwise and assess the quality of assets; and Reviews the actual performance against the projections made and analyzes the reasons for any effect on the spreads.

8.0.4 Foreign Exchange Risk Management

Foreign exchange risk arises due to fluctuation in the exchange rates. The Bank has undertaken strong policy guidelines to minimize foreign exchange risk due to exposure in currency movements. The foreign exchange risk of the Banks minimal as most of the

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transactions are carried out on behalf of the customers against L/Commitments and remittance requirements. Toad dress the issue, all foreign exchange activities have been segregated between front office and back office which are responsible for currency transactions, deal verification, limit monitoring and settlement of transactions separately. Our Bank follows all the prudential guidelines of foreign exchange risk management set by Bangladesh Bank. Treasury Division always monitors the market scenario of risks and manages the foreign exchange operations in such a way so that earnings are not hampered against any adverse movement in market prices. All NOSTRO accounts are reconciled on monthly basis and outstanding entries are reviewed regularly for settlement. Dealing Room has been furnished with separate phone, fax, cable TAV, computer, voice recorder and Reuters System as per Bangladesh Bank guidelines.

8.0.5 Internal Management

Control

and

Compliance

Risk

Internal Control refers to the mechanism in place on a permanent basis to control the activities in an organization. In absence of it risks resulting in unexpected losses caused by faulty internal processes, human errors, frauds & forgery, technology failure and documentary lapses may surface. The primary objectives of internal control system are to help the bank perform better through the use of its resources, identify its weaknesses, take appropriate measures to overcome the same and ensure compliance with applicable laws and regulations.
.

Risks in Banking Business Banking business is broadly grouped under following major heads from Risk Management point of view: 1. The Banking Book 2. The Trading Book 3. Off-Balance-sheet Exposure

8.0.6 Risk management Procedure

Approved predetermined policies and Guidelines To ensure that risks are properly addressed and protected for sustainable development of the Bank, there are approved policies and procedures covering all the risk areas i.e. credit risks, operational risks and market risks. These are formulated taking into account Bangladesh Bank's Guidelines on managing

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Core Risks on Credit Risk Management, Internal Control & Compliance, Asset and Liability Management, Foreign Exchange Risk Management, Information Technology Risk Management and Money Laundering Risk Management as well as the business environment in which the Bank operates, specific needs for particular type of operations or transactions and international best practice.

8.0.7 Credit Risk

Credit risk is the most significant and inherent risk in banking business. Every loan exposure or transaction with counterparty involves the Bank to some degree of credit risks. Credit Risk Management is at the heart of the overall risk management system of the Bank. It is designed and continuously updated to identify, measure, manage and mitigate credit risk to maintain and improve quality of loan portfolio and reduce actual loan losses and to ensure that approved processes are followed and appropriate due diligence are made in approving new credit facilities and renewals. Early warning system Credit policy approved by the Board Credit approval is delegated properly Independent Credit Risk Management Division Separate Credit Administration Division for documentation Independent Credit Monitoring & Recovery Division and Management Recovery Committee Adequate provision & suspension of interest Credit operations are subject to independent Internal Audit

8.0.8 Market Risk

Market risk is the risk of losses in on and off-balance sheet positions arising from movements in market price such as changes in interest rate and price of equity, foreign exchange and commodity. Liquidity, interest rate and Foreign exchange risks Liquidity risks Foreign Exchange Risk

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8.0.10 Operational Risk

Operational risk is the risk of loss resulting from inadequacy or failure of internal processes, systems and people or from external events. Internal Control & Compliance Risk ICC risk management to assess and mitigate risks and as part of it the IC&CD has been divided into three (3) independent units; namely :a) Audit & inspection unit b) Monitoring unit c) Compliance unit Vigilance Cell Money Laundering Risk Legal Risks

8.0.11 Other Risk

Business Risk Reputational Risk Compliance Risk

9.0 TBL SWOT Analysis

STRENGTH

WEAKNESS

Market Leadership Well-conceived Functional Areas Access to Economies of Scale Cost Advantage Ahead on Experience Curve Better Manufacturing Capability

Falling Behind in R & D Still not offering technological banking services such as online facilities, ATM etc. High net worth customers not differentiated well enough from the bulk of less n e t w o r t h customers. .

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Well Trained Human Resources

OPPORTUNITY

THREAT

Serve Additional Customer Group Enter New Markets or Segments

Entry of Low Cost Foreign Competitors Changing Buyers Needs and Tastes

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10.0 Methodology of the Study

The following methodology will be followed for the study based on observation and interpretation. Data sources are scheduled survey, informal discussion with professionals and observation while working in different desks. The secondary data sources are annual reports, manuals, and brochures of Trust Bank limited and different publications of Bangladesh Bank. To identify the implementation, supervision, monitoring and repayment practice- interview with the employee and extensive study of the existing file was and practical case observations were done.

11.0 Findings & Recommendation

Findings: Bases on observation and interpretation I found some positive and negative side in TBL. Those are given below: Bank Follow the overall funds & capital assessment process according to Bangladesh Bank maximum time. Loan and the advances are vital to finance the projects. An appropriate credit distribution system and monitoring will ultimately lead to the profit maximizing of banks. It is evident from that the size of TBL loans and advances are increasing over the years. It indicates mire earning for the bank. It shows a positive growth rate. TBL has a positive growth rate in Net profit.

11.0.1 Problem Identification:

The Bank does not go through back ground investigation all parties. Sometime the loan documentation is not fairly done. Sometime the document verification is done after loan sanction. The SME loan section is very poor because they focused on corporate loan.

11.0.2 Recommendations
The Bank can organize more training program and workshop to make the employees more Efficient in their sector. The Bank has to establish a strong Credit Manual. The Bank has to go through back ground investigation of all parties. All the loan documentations have to done honestly. All the document verifications have to done before loan sanction.

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 The Bank has to construct a long term strong investment policy. The Loan and Advance section has to make strong and the employees have to be devoted to the Bank. The Bank has to give emphasis the SME loan section. The Bank should introduce more loan section

12.0

Conclusion

At last we can say that when people know about TBL performance & its funds & capital management they understand Investing is about making your money work for you. Reinvesting your earnings allows you to take advantage of compounding. Each investor is different in his or her objectives and risk tolerance. There isn't just one strategy that can be used to invest successfully. Each investment vehicle has its own unique characteristics. Diversifying investments in a portfolio helps to manage risk. Together, all these points make up a foundation of knowledge with which any investor should be comfortable. However, these concepts mean nothing unless you can put them into practice. It's great to know that compounding accelerates your investment earnings, but the real question is how do you take advantage of compounding and actually make money? In this section we'll go over an example that demonstrates how to put all of what you've learned into action.

13.0Limitation & Declaration

13.0.1 Limitation of the Report

Though I have given utmost effort to prepare this paper but there are some limitations of the study. They are as follows1. This paper has focused on the most sensitive part of the organization i.e. loan and advance. So the bank authority hesitated to disclose important information to maintain business secrecy. 2. Only few days time is not enough to complete such a study in a lucid manner. 3. The whole report was prepared on the 2008-2009 statement of Dutch Bangla Bank and so it doesnt focus todays picture of the funds & capital scenario of the whole banking sector in the country.

13.0.2 Declaration for the Future Reporter

We would like to advice for the future reporter, while you make a report about Performance Appraisal, then you must consider their methods and techniques for measuring performance, image in the field of HRM and their knowledge and so on. Our additional advice for the future reporter, you should think how Performance Appraisal can help our bankers to develop their job performance

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14.0 Bibliography
Denimton, Michel of financing. Second European Edition: Prentice Hall Europe 2003.2006 Malhotra k Nourish. Marketing Research an applied orientation. Fifth Edition: New Delhi, Prentice Hall Of India. 1200. Financial accounting MO. Com. Strategic Marketing Process. Moderandi Inc. 20062010. Company Profile: TBL Bank Ltd. About Us. Company services Overview http://www.dutchbanglabank.com/ http://www.wikipedia.org

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